Micron Technology, Inc. (NASDAQ:MU) delivered a massive fiscal Q2 beat and far stronger-than-expected Q3 guidance, triggering a wave of bullish analyst revisions highlighting record gross margins, tight memory supply and early strategic customer agreements around AI-driven demand.
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‘Significant Beat and Raise'
Needham analyst N. Quinn Bolton maintained Micron as a Buy and raised the price target to $500 from $450.
Q2 was a "significant beat and raise," according to the firm. Revenue and EPS came in far ahead of estimates, driven by sharply higher DRAM and NAND pricing and record revenue across DRAM, NAND, HBM and all business units.
‘Stunning' Q2
Rosenblatt analyst Kevin Cassidy maintained Micron with a Buy and raised the price target on MU to $600 from $500, calling the quarter "stunning."
The firm highlighted newly introduced Strategic Customer Agreements (SCAs) with one signed 5‑year deal and more under negotiation, viewing these cross‑cycle, commitment‑based contracts as an attempt to smooth memory's historic boom‑bust cycles.
Goldman is Cautious
Goldman Sachs analyst James Schneider maintained a Neutral rating, but raised the price target to $400 from $360.
The analysts acknowledged Micron's blockbuster quarter, but expect the stock to be range‑bound in the near term, given already-elevated expectations.
Goldman sees DRAM and NAND bit supply growth of just over 20% in 2026 and ongoing supply tightness, with HBM revenue expected to grow from a $35 billion TAM to over $100 billion by 2028.
However, the firm warned that HBM pricing momentum could slow as significant new supply arrives in 2027.
Margins Topping Out?
BofA Securities analyst Vivek Arya maintained Micron with a Buy and raised the price objective to $500 from $400, arguing that memory pricing can stay elevated longer as AI workloads make memory a critical driver of "tokenomics."
The note highlights Micron's new five‑year strategic supply agreement layered on top of very limited cleanroom additions that delay real capacity additions until the second half of 2028.
At the same time, BofA cautions that DRAM spot pricing has begun to stabilize and that Micron's guided 81% Q3 gross margin may mark near‑term peak levels.
How the Street is Framing Micron's Q2
Analysts are framing Q2 as a cycle‑defining print for Micron with record revenue and gross margins powered by AI‑driven demand for HBM and data‑center memory, and by aggressive pricing in both DRAM and NAND.
Analysts broadly agree that supply will remain constrained through at least 2026, supported by long lead times for new cleanrooms and wafer starts.
The introduction of multi‑year strategic customer agreements is seen as an important structural shift that could smooth out the memory cycle — even as some, like Goldman, remain cautious around potential HBM pricing normalization from 2027 onward.
MU Price Action: According to data from Benzinga Pro, Micron shares were down 2.56% at $449.89 at the time of publication on Thursday.
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